Estimating Total Project Costs
Complete Cost Breakdown
Understanding ALL costs (not just renovation) is critical to accurate profit projections.
| Cost Category | % of Total | Example ($250k Flip) |
|---|---|---|
| Purchase Price | 55-65% | $150,000 |
| Renovation Costs | 15-25% | $40,000 |
| Holding Costs (6 months) | 4-6% | $12,000 |
| Selling Costs (commission + closing) | 7-9% | $20,000 |
| Total Investment | - | $222,000 |
| ARV (Sale Price) | - | $280,000 |
| Net Profit | 21% | $58,000 |
💡 The 70% Rule Quick Check:
Max Purchase = (ARV × 0.70) - Renovation Costs
Example: $280k ARV × 0.70 = $196k - $40k renovation = $156k maximum purchase price
